Oil-rich South Sudan has become the world’s newest country, splitting away from Khartoum-ruled north after decades of brutal war that claimed some two million lives.

Glorious celebration of the long-awaited independence began in Juba, the capital of South Sudan, at midnight last night (0230 IST this morning).

Frenzied people poured into the city streets, dancing, banging drums, waving flags and chanting the name of Mr Salva Kiir Mayardit, the President of the new nation.

As a countdown clock in the city centre reached zero, the new national anthem of South Sudan, which became the 193rd country in the world and 54th UN member state in Africa, was played on television, marking the culmination of the January independence referendum.

A host of foreign dignitaries, including the Vice-President, Mr Hamid Ansari, Sudan’s President, Mr Omar al-Bashir, and UN Secretary General, Mr Ban Ki-moon, are attending the celebrations in Juba.

Sudan last evening extended official recognition to South Sudan, calling it an “independent state’’.

“The Republic of Sudan announces that it recognises the Republic of South Sudan as an independent state, according to the borders existing on January 1, 1956,” the Minister of Presidential Affairs, Mr Bakri Hassan Saleh, said in a statement broadcast on state television.

“The Government of Sudan is committed to implementing the comprehensive peace agreement and to resolving all the post-referendum issues,” Mr Saleh said.

South Sudan had reached a comprehensive peace agreement with North Sudan in 2005, brokered by US Secretary of State Mr Colin Powell under former President Mr George W. Bush, which stopped the bloody civil war and paved the way for the January referendum.

Some 99 per cent of southern Sudanese had voted for independence from the north of Sudan in the referendum.

But, major elements of the 2005 peace agreement are still unresolved like which side will control the oil-rich region of Abyei, where fighting has also broken out raising concerns that conflict may flare up again; citizenship protection for minorities; where final borders will be set; and how oil earnings will be shared — the south has 70 per cent of the reserves.

“This is a fragile and fraught moment as well. It cannot and must not be taken for granted,” US Ambassador to the UN Ms Susan Rice, who is leading a bipartisan American delegation to the independence celebration in Juba, said on Thursday.

She asked the northern and southern governments to resolve issues related to the resource-rich area of Abyei and other border regions.

The US and its partners have offered to convene a global conference in September for South Sudan, which will allow the new country’s leaders to present their plans for encouraging the much-needed private investment.